Delhi Police Arrests Key Suspect in WazirX Cryptocurrency Heist

Delhi Police have arrested SK Masud Alam from West Bengal for his alleged role in the WazirX cryptocurrency heist. The attack, which took place on July 18, 2023, led to the theft of over ₹2,000 crore worth of digital assets. 

The case has attracted attention due to the scale of the breach and Alam’s suspected involvement. Investigators are working hard to piece together how the heist unfolded and track down the stolen funds.

Details of the WazirX Breach 

According to Delhi Police, Alam created a fake WazirX account under the name Souvik Mondal. He later sold this account to a Telegram user, M Hasan. Police believe Hasan used this compromised account to carry out the cyberattack. 

The target was WazirX’s hot wallet, which is an online system and more vulnerable to breaches. Thankfully, the cold wallet, which is offline, remained untouched. Despite the cold wallet's protection, the stolen assets from the hot wallet accounted for nearly 45% of WazirX's total funds at the time. 

Liminal Custody’s Involvement and Seized Data

The investigation has also raised concerns about Liminal Custody, the company responsible for securing WazirX’s wallets. Authorities claim that Liminal Custody failed to provide key information despite multiple requests. 

This lack of cooperation has led to questions about the company’s security practices. Delhi Police have indicated that Liminal’s role in the breach will be further investigated, with a supplementary chargesheet expected.

Meanwhile, police have seized three laptops from WazirX. These laptops were used by authorized signatories to manage multi-signature wallets, which require multiple approvals for each transaction.